New Delhi: The central government increased the dearness allowance for its over one crore employees and pensioners by 4 per cent, bringing the total to 42 per cent from 38 per cent.
Union Minister Anurag Thakur announced that the government will spend Rs 12,815 crore to cover the increase in dearness allowance or DA.
To compensate for rising prices, the government provides DA to its employees and dearness relief to seniors. It is based on the most recent consumer price index for industrial workers or CPI-IW.
According to the government, the DA increase would be implemented retroactively from January 1, 2023.
“… About 47.58 lakh central government employees and 69.76 lakh pensioners will benefit from this. This increase is in accordance with the accepted formula, which is based on the 7th Central Pay Commission’s recommendations,” according to a government statement.
The centre last revised DA in September 2022, with retroactive effect from July 1, 2022. It was raised by 4 per cent to 38 per cent at that time as well.
DA is updated at least twice a year.
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